It is difficult for the cashew industry when raw material prices drop and exports slow down.
Cashew harvest has just started, but in Binh Phuoc province, the capital of the country, the purchase price of fresh cashew is lower than the 2020 crop after continuously decreasing.
In early March, the purchase price of fresh cashew nuts was 28,000-29,000 VND / kg but by the end of the month decreased to more than 20,000 VND / kg due to rain affecting the purchase and preliminary processing.
The paradox is that the domestic cashew price decreased while the output was also low and export increased in the first month of the year.
The weather of this year is erratic, so the first phase of cashew flower is late, the second flowering phase meets the right occasion of the hot weather and heavy rain, so most of the fruiting rate per tree is low compared to every year. Currently, many cashew areas are also in the third flowering stage, but with unusual weather, flowering and fruit setting are expected to continue to be affected.
Meanwhile, cashew nut exports show signs of slowing down as the Covid-19 pandemic is still happening complicatedly and unpredictably all over the world, especially in major markets, signaling a difficult year of Vietnam cashew industry. After an increase in January, exports in February turned down.
According to preliminary data of the General Department of Customs, in February, cashew nut exports decreased sharply compared to January, reaching 21,983 tons, equivalent to 127.55 million USD, down 52% in both volume and turnover. Cashew export prices in February also decreased 1.7% to 5,802 USD / ton.
However, good export in January brought total exports in the first 2 months of this year to 67,185 tons, turnover of 394.19 million, average price of $ 5,867 / ton; up 32.6% in volume and 10.4% in turnover but down 16.7% in price compared to the same period in 2020.
The US market continued to rank first in Vietnam’s cashew exports in the first 2 months of this year with 26.8% of the total volume and 25% of the total cashew export turnover of the country. 2nd place still belongs to the European Union with 23% of the total volume and 19.8% of the total turnover, while the 3rd place belongs to China with 13.6% of the total volume and 16.8% of the value.
Cashew exports to the US in the first 2 months of this year reached 17,999 tons, equivalent to $ 99.07 million, priced at $ 5,504 / ton, up 0.4% in volume but turnover decreased by 21.9% and prices decreased by 21, 5% over the same period in 2020.
Exports to the European Union in the first 2 months of this year reached 15,489 tons, equivalent to 77.98 million USD, at the price of 5,034.4 USD / ton; increase 15.7% in volume, but decrease 18.8% in turnover and decrease 29.8% in price compared to the same period in 2020.
The Chinese market is at the 3rd position but with a strong increase in exports, the total exports have increased in the past 2 months. Accordingly, the first 2 months of 2021, cashew nut exports to China reached 9,138 tons, equivalent to 66.34 million USD, priced at $ 7,260 / ton; a very strong increase of 213% in volume and 206% of turnover but a decrease of 2.2% in price compared to the same period in 2020.
Businesses after completing all orders in the first quarter are now looking for new orders in the context of a quiet market, many customers already have inventory in the countries so there is no need to buy close delivery, the delivery orders are also little.
At the 12th Vietnam International Cashew Conference held in March, experts said that in the global cashew value chain, Vietnam mainly exports low-value pre-processed cashews, about 10 USD / kg, while the finished cashew kernels reach consumers in countries about 30 USD / kg. Thus, Vietnam accounts for only about 30% of the cashew industry value chain.
Vietnam’s cashew exports are also heavily dependent on imported raw materials. Therefore, the cashew processing industry for export of our country is under great pressure from the policy of supporting cashew growers, restricting the export of raw cashew nuts from African countries such as Ivory Coast, Tanzania.
Raw cashew import market share of top 3 markets.
Meanwhile, the major cashew consuming markets in the world such as India and China are also applying policies to limit the output of cashew kernel imported from Vietnam.
Mr. Pham Van Cong, Chairman of the Vietnam Cashew Association, said that the biggest advantage of the Vietnamese cashew industry is the world’s most advanced processing technology produced by Vietnamese people. However, this is not enough. To overcome the above difficulties and challenges, the cashew industry needs to have a methodical strategy to increase the value of cashew nuts, shifting from preliminary processing of cashews and exporting semi-finished products to refined products, going directly into market.
In order to contribute to the industry to take advantage of opportunities, advantages, overcome challenges and difficulties, the Vietnam Association of Things is expediting construction to propose to the Government “Vietnam’s strategy to develop the sector in the new situation”. In particular, proposing mechanisms and policies to strongly implement deep processing, meeting the diverse needs of the world market and gaining a worthy position in the global value chain.
Source: ndh.vn – Translated by fintel.vn